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Long story short:
1. User enters site / blog
2. User gets distinct id and his source / campaign / medium
3. User not converting
4. Three days later user sees a retagrgeting ad and converts
5. User is attributed to his/hers initial UTM
6. Retargeting campaigns get no conversions
7. FAIL

  • ND

    Nathan Decker

    about 4 years ago #

    A complicated problem, no doubt.

    I actually most commonly deal with the reverse of the problem stated here. The larger problem with retargeting has to do with selection bias. Since your retargeting audience is by definition a warm lead, they automatically have a much higher likelihood of completing the desired action.

    The problem here looks like this:
    1. User enters site / blog
    2. User gets distinct id and his source / campaign / medium
    3. User not converting
    4. Three days later user sees a retagrgeting ad and CLICKS (then converts)
    5. User is attributed to retargeting campaign - first "introducer" campaign gets no credit

    There are a few ways to deal with this:

    1) Analyze retargeting converters using a different attribution model. This will give you a basis to discount the conversion and revenue generated. Google Analytics has this functionality. Look at your retargeting campaign through a linear or reverse time-decay attribution lense. You can use these alternative views to better evaluate it's true contribution and effectively discount the "last in" method to get at a truer ROI.

    2) Hold out a control group. Most vendors will allow you to reserve a small portion of your audience to experiment with. This audience qualifies to receive the retargeting ad but instead sees a Public Service Announcement like a generic ad (I suggest choosing your favorite non profit). You then compare the revenue generated from each group which will help you ascertain the true incremental value of your retargeting efforts. This method does require some level of trust in your vendor's ability to correctly execute such a test and its honesty in it delivering reporting.

    There are other ways but I think these two are the most effective.

    This is my first post on Growthhackers so hopefully it's in the right spot.

  • HQ

    Hila Qu

    about 4 years ago #

    Very good question, interesting to here about potential solutions!

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